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RESOLUTION
AUTHORIZING THE CORPUS CHRISTI BUSINESS AND JOB
DEVELOPMENT CORPORATION TO EXECUTE AN
AFFORDABLE HOUSING PROJECT AGREEMENT WITH CITY
OF CORPUS CHRISTI, IN THE AMOUNT OF $150,000, FOR
HOME BUYER ASSISTANCE, AND AUTHORIZING THE CITY
MANAGER, OR DESIGNEE, TO EXECUTE AN AFFORDABLE
HOUSING PROJECT SERVICE AGREEMENT WITH THE
CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT
CORPORATION REGARDING IMPLEMENTATION AND
ADMINISTRATION OF THE AFFORDABLE HOUSING PROJECT
AGREEMENT BETWEEN CORPORATION AND CITY OF
CORPUS CHRISTI
WHEREAS, there is a need for an affordable housing project service agreement
between the City of Corpus Christi and the Corpus Christi Business and Job
Development Corporation for the implementation and administration of the
affordable housing project agreement with City of Corpus Christi for Home Buyer
Assistance.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. The Corpus Christi Business and Job Development Corporation is
authorized to execute the affordable housing project agreement with City of
Corpus Christi for Home Buyer Assistance, which is attached to this resolution as
Exhibit A, and expend $150,000 of funds available to the Corporation for that
purpose.
SECTION 2. That the City Manager, or designee, is authorized to execute the
affordable housing project service agreement between the City of Corpus Christi
and the Corpus Christi Business and Job Development Corporation for the
implementation and administration of the affordable housing project agreement
with City of Corpus Christi, which is attached to this resolution as Exhibit B.
ATTEST:
Armando Chapa
City Secretary
APPROVED as to form: August 4, 2008
R. Jay Rei g
First Assis . t City Attorney
For the City Attorney
CITY • CORPUS CHRISTI
rLdif LI
my Gar ett
Mayor
027799
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Corpus Christi, Texas
_2.— of SIC" , 2008
The above resolution was passed by the following vote:
Henry Garrett
Melody Cooper
Arft-A, A,
nvt
Ak-uki-
Larry Elizondo, Sr.
Mike Hummell
Bill Kelly
Priscilla G. Leal
John E. Marez OW+
Nelda Martinez
Michael McCutchon L
LI
027799
H:ILEG-DIRIShared\aylAgenda1200818-121Res-Affordale Housing-CityofCC-HomeBuyerAssist.doc
CITY OF CORPUS CHRISTI
CERTIFICATION OF FUNDS
(City Charter Article IV, Sections 7 & 8)
1, the Director of Financial Services of the City of Corpus Christi, Texas (or his/her duly authorized
representative), hereby certify to the City Council and other appropriate officers that the money
required for the current fiscal year's portion of the contract, agreement, obligation or expenditure
described below is in the Treasury to the credit of the Fund specified below, from which it is to be
drawn, and has not been appropriated for any other purpose. Future payments are subject to
annual appropriation by the City Council.
City Council Action Date: August 12. 2008
Agenda Item:
A. Resolution authorizing the Corpus Christi Business and Job Development Corporation to
execute an affordable housing project agreement with City of Corpus Christi for home buyer
assistance, and authorizing the City Manager, or designee, to execute an affordable housing
project service agreement with the Corpus Christi Business and Job Development
Corporation regarding implementation and administration of the affordable housing project
agreement between Corporation and the City of Corpus Christi.
Amount Required:
$ 150,000.00
Fund Name
Fund No.
Org. No.
Account
No.
Project
No.
Amount
4A 1/8t" Cent Sales Tax for
Economic Development
WO O! 0
I D 0 0
540 a qD
$150,000.00
Total
$150,000.
Certification Not Required
Director of Fin ial Services
Date: a l d
AFFORDABLE HOUSING PROJECT AGREEMENT
CITY OF CORPUS CHRISTI - HOME BUYER ASSISTANCE
This Affordable Housing Project Agreement ("Project Agreement") is entered into
between the Corpus Christi Business and Job Development Corporation ("Corporation")
and the City of Corpus Christi ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979) empowered local
communities with the ability to adopt an optional local sales and use tax as a means of
improving the economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi passed
Proposition 2, New and Expanded Business Enterprises, which authorized the adoption
of a sales and use tax for the promotion and development of new and expanded
business enterprises at the rate of one-eighth of one percent to be imposed for 15
years;
WHEREAS, in the same election, the residents of the City passed Proposition 2B,
Affordable Housing, which authorized the use of a portion of the sales and use tax
approved under Proposition 2 for affordable housing, up to $500,000 annually, so long
as there are projects for which the amount can reasonably be used;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated
under Proposition 2B for affordable housing was subsequently enacted by the City's
City Council ("City Council"), and filed with the State Comptroller of Texas, effective
April 1, 2003, to be administered by the Corporation's Board of Directors ("Board");
WHEREAS, the Board issued a request for proposals for affordable housing projects;
WHEREAS, the City submitted a proposal to the Board to request funds to provide
deferred forgivable loans to assist eligible homebuyers with closing costs and down
payments toward the purchase of existing single-family houses;
WHEREAS, the Board has determined that it is in the best interests of the residents of
the City of Corpus Christi that affordable housing funds be awarded, by execution of this
Project Agreement, to accomplish the affordable housing project described in this
agreement and in the City's proposal;
In consideration of the covenants, promises, and conditions stated in this Project
Agreement, the Corporation and the City agree as follows:
1. Project Agreement to Implement Affordable Housing Project. This Project
Agreement between the Corporation and City is executed to implement the promotion
and development of an affordable housing project proposed by the City in response to
the Board's request for proposals ("Project Response"). The Project Response
submitted by the City, entitled "Home Buyer Assistance" ("Project") is attached to this
Affordable Housing - CofCC - HBA 072208.doc
Page 1 of 9
Exhibit A
Project Agreement as Exhibit A, and is incorporated in this Project Agreement by
reference.
2. Effective Date. The effective date of this Project Agreement is the latest date on
which a party to the Project Agreement executes this Project Agreement. ("Effective
Date")
3. Expiration Date. This Project Agreement expires on July 30, 2009.
4. Services to be Provided by City.
a. The City, through the City's City Manager or his designee ("City Manager"),
administers the funding and performs contract administration responsibilities, as
outlined in this Project Agreement, for the Corporation.
b. To provide $5,000.00 in the form of a deferred forgivable loan to up to 60
qualified homebuyers for closing costs and down payment assistance in the
purchase of an existing single-family house. The funding for the $5,000.00 loan
will be obtained by using $2,500.00 in 4A combined with $2,500.00 in HOME
federal funds.
c. The eligibility requirements for participation in the Project are specified in
Exhibit B, which is incorporated in the Project Agreement by reference.
d. Each homeowner must execute a note and a deed of trust that conform to
Exhibits C and D of this agreement, or a revised version provided by the City.
5. Grant to be Provided by Corporation.
a. The Corporation will match the City $2,500.00 for each $5,000.00 deferred
forgivable loan it makes to a qualified homebuyer for closing costs and down
payment assistance in the purchase of an existing single-family house.
b. The total reimbursements by the Corporation to the City under this Project
Agreement may not exceed $150,000.00.
6. Documentation and Reports.
a. The City shall maintain all documentation relating to the receipt and
expenditure of the funds provided under this Project Agreement for a period of
three years following the expiration of this Project Agreement or for such longer
period as may be required by Federal or State law.
b. The City shall provide access to all records, documents, reports, and audits,
regarding the funded activity under this Project Agreement, during regular
business hours, for the purpose of inspection and copying by the City Manager.
Furthermore, the City shall provide to the City Manager any information
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Affordable Housing - CofCC - HBA 072208.doc
pertinent to this Project Agreement, as may be requested during the term of this
Project Agreement.
c. Grantee shall submit a performance report ("Quarterly Report") to the City
and the Corporation at least once each quarter, and a complete performance
report ("Final Report") within 30 days of the expiration of this Project
Agreement. The Quarterly and Final Reports must contain all relevant details
pertaining to any homeowner assistance provided with funds made available
under this agreement, and include any supporting documentation required to
substantiate the written narrative contained in the reports. The reports must
document:
(1) Property appraisal information
(2) Note and Deed of Trust for the property purchased
(3) Expenses incurred for construction project
(4) Purchase price of the new constructed home
(5) Home buyer assistance information — amounts per homebuyer
(6). Itemized Energy efficiency (green building) features with documented
expenses
(7). Balance of 4A grant
(8) Pending project expenses
(9). Status of project time line
(10). Project challenges and anticipated resolutions.
7. Amendments or Modifications.
a. No amendments or modifications to this Project Agreement may be made, nor
any provision waived, unless the amendment or modification is made in writing
and signed by persons duly authorized to sign agreements on behalf of all
parties.
b. The Corporation's Chairman and City Manager are authorized to execute
minor amendments or modifications to this Project Agreement, by exchange of
letters with the Grantee. The minor amendments and modifications may relate to
the timing of performance and reporting, the scope of work to be performed, the
number of homebuyers assisted, or the amount of assistance provided to each
homebuyer. However, the minor amendments or modifications may not increase
the amounts of money available to the Grantee under this Project Agreement.
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Affordable Housing - CofCC - HBA 072208.doc
8. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Project Agreement or the application of this Project
Agreement to any person or circumstance is, to any extent, held illegal, invalid,
or unenforceable under present or future law or by a final judgment of a court of
competent jurisdiction, then the remainder of this Project Agreement, or the
application of the term or provision to persons or circumstances other than
those as to which it is held illegal, invalid, or unenforceable, will not be affected
by the law or judgment, for it is the definite intent of the parties to this Project
Agreement that every section, paragraph, subdivision, clause, provision,
phrase, and word of this Project Agreement be given full force and effect for its
purpose.
b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Project Agreement, then the remainder of this Project Agreement is not affected
by the law, and in lieu of any illegal, invalid, or unenforceable clause or
provision, a clause or provision, as similar in terms to the illegal, invalid, or
unenforceable clause or provision as may be possible and be legal, valid, and
enforceable, will be added to this Project Agreement automatically.
9. Compliance with Laws. The City shall comply with all applicable Federal, State,
and local government laws, rules, regulations, and ordinances which may be relevant to
the City's performance under this Project Agreement.
10. Jurisdiction and Venue.
a. This Project Agreement is governed by and must be construed under the
laws of the State of Texas.
b. All actions brought to enforce compliance with this Project Agreement must
be brought in Nueces County, Texas, where this Project Agreement was
entered into and must be performed.
11. Acknowledgment and Construction of Ambiguities. The parties expressly
agree that each has independently read and does understand this Project Agreement.
By the City's execution of this Project Agreement, the City agrees to be bound by the
terms, covenants, and conditions contained in this Project Agreement. Any ambiguities
in this Project Agreement may not be construed against the drafter.
12. Indemnity. The City must fully indemnify and hold harmless the
City of Corpus Christi, the Corpus Christi Business and Job
Development Corporation, and their officers, employees, and agents
(hereinafter, collectively "Indemnitees") from and against any and all
liability, damage, loss, claims, demands, expenses, suits, and causes
of action of any nature whatsoever on account of injury or damage to
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Affordable Housing - CofCC - HBA 072208.doc
person (including, without limitation on the foregoing, premises
defects, workers' compensation, and death claims) or property loss or
damage of any kind whatsoever which arise out of or are in any
manner connected with, or are claimed to arise out of or be in any
way connected with, either proximately or remotely, wholly or in part,
any activities by the City, its officers, employees, agents, members,
invitees, or independent contractors with respect to this Project
Agreement or the Project that is the subject of this Project
Agreement, regardless of whether such injuries, death, or damages
are caused, or are claimed to be caused, by the contributory
negligence of any of the Indemnitees, but not if caused by the sole
negligence of the Indemnitees unmixed with the fault of any other
person or entity. The City covenants and agrees that if Indemnitees,
or any of them, are made a party to any litigation against the City or in
any litigation commenced by any party other than the City relating to
this Project Agreement or Project, the City shall, upon receipt of
reasonable notice regarding commencement of litigation, at its own
expense, investigate all claims and demands, attend to their
settlement or other disposition, defend Indemnitees in all actions
based thereon with legal counsel satisfactory to Indemnitees, and pay
all charges of attorneys and all other costs and expenses of any kind
arising from any said liability, damage, loss, demand, claim, or action.
13. Warranties. The City warrants and represents to Corporation the following:
a. The City is a duly organized, validly existing, and in good standing under the
laws of the State of Texas, has all authority to carry on its business as presently
conducted in Corpus Christi, Texas.
b. The City has the authority to enter into and perform, and will perform, the
terms of this Project Agreement.
c. The City has received a copy of the Texas Development Corporation Act of
1979, Art. 5190.6, Vernon's Texas Revised Civil Statutes, and acknowledges that
the funds granted in this Project Agreement must be utilized solely for purposes
authorized under State law and by the terms of this Project Agreement.
d. If an audit determines that the funds were not used for authorized purposes,
the City agrees to reimburse Corporation for the sums of money spent for
purposes not authorized by law within 30 days written notice requesting
reimbursement.
e. The parties executing this Project Agreement on behalf of the City are duly
authorized to execute this Project Agreement on behalf of the City.
Affordable Housing - Co#CC - HBA 072208.doc
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14. Events of Default. The following events constitute a default of this Agreement:
a. Failure of the City to timely, fully, and completely comply with any one or more
of the requirements, obligations, duties, terms, conditions, or warranties of this
Project Agreement.
b. The Corporation determines that any representation or warranty on behalf of
the City contained in this Project Agreement or in any financial statement,
certificate, report, proposal, or opinion submitted to the Corporation in connection
with this Project Agreement was incorrect or misleading in any material respect
when made.
15. Notice of Default. Should the Corporation determine that the City is in default
under the terms of this Agreement, the Corporation shall notify the City in writing of the
event of default and provide 60 days from the date of the notice ("Cure Period") for the
City to cure the event of default.
16. Results of Uncured Default. After exhausting good faith attempts to address any
default during the Cure Period, and taking into account any extenuating circumstances
that might have occurred through no fault of the City, as determined by the Board of
Directors of the Corporation, the following actions must be taken for any default that
remains uncured after the Cure Period:
a. The City shall immediately repay to Corporation, with interest at the interest
rate paid by the City on its most recentiy issued general obligation bonds from
date of expiration of Cure Period until fully paid, all funds not used under terms of
this Project Agreement.
b. The City shall pay Corporation reasonable attorney fees and costs of court to
collect amounts due to Corporation.
c. The Corporation shall have no further obligations to the City under this Project
Agreement and this Project Agreement shall terminate.
d. The Corporation may be held liable for any consequential damages.
e. The Corporation may pursue all remedies available under law.
17. No Waiver.
a. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, constitutes a waiver of any subsequent
breach of the covenant or condition of the Project Agreement.
b. No waiver of any covenant or condition, or the breach of any covenant or
condition of this Project Agreement, justifies or authorizes the nonobservance on
any other occasion of the covenant or condition or any other covenant or
condition of this Project Agreement.
Affordable Housing - CofCC - HBA 072208.doc
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c. Any waiver or indulgence of the City's default may not be considered an
estoppel against the Corporation.
d. It is expressly understood that if at any time the City is in default in any of its
conditions or covenants of this Project Agreement, the failure on the part of the
Corporation to promptly avail itself of the rights and remedies that the
Corporation may have, will not be considered a waiver on the part of the
Corporation, but Corporation may at any time avail itself of the rights or remedies
or elect to terminate this Project Agreement on account of the default.
18. Notices.
a. Any required written notices shall be sent, certified mail, return receipt
requested, addressed as follows:
If to the City:
City of Corpus Christi
Attn.: City Manager
P.O. Box 9277
Corpus Christi, Texas 78469-9277
If to Corporation:
City of Corpus Christi Business and Job Development Corporation
Attn: Executive Director
1201 Leopard Street
Corpus Christi, Texas 78401
b. Notice is effective upon deposit in the United States mail in the manner
provided in subsection a of this section.
19. Incorporation of other documents.
The Corpus Christi Business & Job Development Corporation 4A Board
Affordable Housing Request for Proposals issued April 7, 2008, is incorporated
into this Project Agreement.
20. Relationship of Parties. In performing this Agreement, the Corporation and the
City shall act in an individual capacity, and not as agents, representatives, employees,
employers, partners, joint -venturers, or associates of one another. The employees or
agents of either party may not be, nor be construed to be, the employees or agents of
the other party for any purpose.
21. Nonassignment. The City may not assign, mortgage, pledge, or transfer this
Project Agreement or any interest contained in this Project Agreement without the prior
written consent of the other parties to this Project Agreement.
Affordable Housing - CofCC - HBA 072208.doc
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22. Non-discrimination.
a. The City may not discriminate nor permit discrimination against any person or
group of persons on the grounds of race, gender, disability, religion, age, or national
origin in any manner prohibited by the laws of the United States or the State of
Texas.
b. The Corporation retains the right to take any action the United States or the State
of Texas may direct to enforce this non-discrimination covenant.
23. Captions. The captions in this Project Agreement are for convenience only and
are not a part of this Project Agreement. The captions do not in any way limit or amplify
the terms and provisions of this Project Agreement.
24. Entire Agreement. This Project Agreement and the referenced and incorporated
documents constitute the entire agreement between the Corporation, the City, and the
City for the purpose stated. All other agreements, promises, representations, and
understandings, oral or otherwise, with reference to the subject matter of this Project
Agreement, unless contained in this Project Agreement, are expressly revoked, as the
parties intended to provide for a complete understanding, within the provisions of this
Project Agreement and its referenced and incorporated documents, of the terms,
conditions, promises, and covenants relating to the each party's required performance
under this Project Agreement.
CORPUS CHRISTI BUSINESS &
JOB DEVELOPMENT CORPORATION
Eloy Salazar
Chairman
Date
ATTEST: CITY OF CORPUS CHRISTI
Armando Chapa George K. Noe
City Secretary City Manager
Date: Date:
Affordable Housing - CafCC - HBA 072208.doc
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APPROVED AS TO FORM: ita 7'I, •Pooe
R. Jay Reining
First Assistant City Attorney
for the City Attorney
Affordable Housing - CofCC - HBA 072208.doc
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Response to 2008 Request for Proposal
"4A Board Affordable Housing Program"
Corpus Christi Business and Job Development Corporation
Submitted By:
City of Corpus Christi
NEIGHBORHOOD SERVICES DEPARTMENT
Project: Homebuyer Assistance $5,000 — Existing Homes
4A Funding Request: $150,000 (Grant)
Exhibit A
LETTER OF TRANSMITTAL
May 1, 2008
City Secretary Office
City of Corpus Christi
Attention: Armando Chapa, City Secretary
1201 Leopard
Corpus Christi, TX 78469-9277
Enclosed is the City of Corpus Christi, Neighborhood Services Departments
2008 proposal for a grant in the amount of $150,000 regarding the 4a Board's
Affordable Housing Programs for consideration and funding. We have reviewed
the proposal requirements and we are submitting the necessary proposal
documents.
For any additional information regarding this proposal, please contact me at 826-
3234.
We look forward to working with the 4a Board's Affordable Housing Program.
Sincerely,
QUALIFICATIONS & EXPERIENCE
General
The City of Corpus Christi through the Neighborhood Services Department
(NSD) is applying for a grant in the amount of $150,000 through the 4a Board
Affordable Housing Program. it is our desire to continue to assist in the
development of affordable housing units by expanding the number of affordable
housing units in the City of Corpus Christi. Neighborhood Services Department
is the main entity that has carried the responsibility of developing and promoting
affordable housing in the City of Corpus Christi for low income and very low
income families for the last 30 years.
Qualifications & Experience
Neighborhood Services Department (NSD) has extensive experience managing
and administrating housing programs for low income families. NSD has worked
with new construction and rehabilitation programs for the last 30 years and has
assisted over a thousand homeowners and homebuyers with their housing
needs. The programs administered by NSD are monitored by HUD, and are
found to be managed within approved program guidelines.
NSD has a staff that is highly qualified and experienced in managing housing
programs. The team that will be managing the 4a Board Affordable Housing
Program has several years of experience administering housing programs that
assist low income families.
Currently, this team manages a $5,000 Homebuyer Assistance Program and a
New Construction Homebuyer Program. Additionally, this team manages a
Rehabilitation Loan Program, Demolition and Replacement Loan Program and
an Emergency Home Repair Grant Program. Through these programs
approximately 500 families are assisted on an annual basis.
Neighborhood Services Department also has played an integral role in assisting
other community organizations in developing their capacity to provide affordable
housing. NSD created and provides support staff for the Corpus Christi
Community Development Corporation (CDC) which was established to provide
and assist in creating affordable housing. NSD also was instrumental in assisting
Nueces County Community Action Agency with establishing their homebuyer
programs.
CAPABILITES STATEMENT
Neighborhood Services Department (NSD) has administered and managed
various housing programs including homebuyer programs. During the last 30
years NSD has assisted over one thousand families through its various
programs. Throughout these years NSD has provided assistance in
rehabilitation, emergency repairs, and home buying and is highly adapt at
working with low income households, realtors, builders, and lenders.
NSD is responsible for managing and administering the funds the City of Corpus
Christi receives from the Department of Housing and Urban Development.
During the past 30 years NSD has received an average of 5 million dollars per
year to carry out various housing programs and assist community non profit
organizations with their facility needs. NSD staff has shown they are capable of
managing HUD funds and following federal regulations.
ACKNOWLEDGEMENT
This is to acknowledge that we have reviewed all the provisions of the request for
proposal and further certify we will comply with all its requirements.
02S. v8
onne Morales Haag, Direct° Date
Project Scope:
Leveraging:
LEVEL OF ASSISTANCE
Neighborhood Services Department is requesting
$150,000 in the form of a grant and proposes to
provide $2,500 in 4a funds as a match to its current
$5,000 Homebuyer Assistance Program. The $2,500
in 4a funds will be combined with $2,500 in HOME
funds for a total assistance of $5,000. The $5,000 will
be provided in the form of a Deferred Forgivable Loan
that will be used by the homebuyer for closing costs
and down payment assistance in the purchase of an
existing single-family house.
NSD plans to leverage 4a funds with HUD HOME
Program funds. NSD receives an average of
$200,000 through this HUD funded homebuyer
program and assists approximately 40 homebuyers.
The 4a funds will allow us to assist more persons with
the purchase of a house.
Number Assisted: Neighborhood Services Department anticipates being
able to assist approximately 70 total families should
we receive the $150,000 in 4a funds.
Time Frame:
NSD anticipates carrying out this Program within a
one year period (August 2008 to July 2009) in
conjunction with its existing $5,000 Homebuyer
Program.
Exhibit B
Project Eligibility Criteria
The City's 4A Board of Directors is requesting proposals involving the creation of
individually owned single-family housing units that qualify as affordable housing.
Affordable Housing:
Texas Revised CMI Statues, Article 5190.6, Section 3(c) includes promotion of the
development and expansion of affordable housing as defined by 42 USC 12745 as a
projects eligible for the expenditure of economic development sales tax funds (4a
funds). This Statute basically provides qualification or restrictions on housing to
assure that the housing retains the "affordable" characteristic:
Housing that is for homeownership qualifies as affordable if:
(1) The initial purchase price does not exceed 95% of the median purchase price
for the area, with adjustments for differences in the structure, such as single-
family, new or old housing;
(2) The home is the principal residence of an owner whose family qualifies as a
low-income family (determined at the time of purchase);
(3) The home is subject to resale restrictions to provide for resale to qualifying
persons with a fair return to the owner and investment made to make the home
affordable, and
(4) If the home is newly constructed, it meets energy efficiency standards.
(5) Rehabilitation of affordable housing would require that sufficient safeguards
be placed on the funding to assure that the housing remains affordable with the
definition of 42 USC 12745.
Proposals must be for affordable single-family home ownership units designed to
assist low and moderate income households. Persons assisted must be residents of
the City of Corpus Christi; and must meet the following HUD income guidelines:
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WO&-
FAMILY
SIZE
1
2
3
4
5
6
7
8
ANNUAL
INCOME
27000
30850
34700
38550
41650
44700
47800
50900
Revised 3121107 Income limits are established by HUD and are subject to change without notice
REAL ESTATE NOTE
Date:
Maker's Address:
Payee: CORPUS CHRISTI BUSINESS AND JOB DEVELOPMENT CORPORATION
c/o City of Corpus Christi, Economic Development Office, P.O. Box 9277, Corpus Christi,
Nueces County, Texas, 78469
Principal Amount:
Annual Interest Rate on unpaid principal from date of funding: Zero percent (0%)
Term of this Note shall be 10 years if the amount ranges $15,000 to $20,000; Terms of payment:
This Note shall be due and payable in approximately One Hundred Twenty (120) monthly
installments, each being in the amount of of the principal amount set forth above. The
first of said monthly installments being due and payable on the date of closing, and the remaining
installments shall be due in consecutive order thereafter on the same day of each and every succeeding
month.
Provided, however, that for each month Maker occupies the property described herein as Maker's
principal residence during the term of this note, the monthly installment due herein shall be waived and
forgiven by payee, and Maker shall not be required to pay such monthly installments.
The term "principal residence" means a dwelling which, depending on all of the facts and
circumstances, including the good faith intent of the occupant, is occupied primarily for residential
purposes by the owner.
Default in the payment of any part of the principal, when due, or failure to comply with any or the
agreement and conditions in any and all instruments given to secure this note including, without
limitations any default under the terms and provisions of the Real Estate Notes, shall at the option of the
holder hereof, at once mature the whole of this note, without notice.
EXHIBIT C
Page 1 of 2
In the event this note is placed into the hands of an attorney for collection, or if collected through
Probate or Bankruptcy proceedings, then an additional ten percent (10%) on the amount of principal and
interest then owing hereon, shall be added to the same as reasonable and necessary attorney's fees in
addition to the court costs.
The markers and all endorsers, sureties and guarantors of this note hereby severally waive
presentment for payment, notice of non-payment, notice of intent to accelerate, notice of acceleration,
protest and diligence in bringing suit, against any party hereto, and consent that the time of payment of
this note, or any part thereof, may be extended without notice.
Each maker is responsible for the entire amount of this note.
This note is secured by Deed of Trust covering the following described property situated in
Nueces County, Texas, to wit:
MAKERS
EXHIBIT C
Page 2 of 2
DEED OF TRUST
Date:
Grantor:
Grantor's Mailing Address (including county):
Corpus Christi, Nueces County, Texas 784
Trustee: Mary Kay Fischer, City Attorney, 1201 Leopard Street, Corpus Christi, Texas
78401
Beneficiary: Corpus Christi Business and Job Development Corporation
Beneficiary's Mailing Address (including county):
P.O. Box 9277
Corpus Christi, Nueces County, TX 78469
Note(s): That note of even date herewith executed by Maker payable to the order of
Beneficiary and described as follows:
Date:
Amount:
Maker:
Payee: Corpus Christi Business and Job Development Corporation
Final Maturity Date: Due upon earliest of following events:
(1) sale or transfer of property.
(2) Grantor(s) cease to occupy property as principal residence.
Terms of Payment: As therein provided
Property (including any improvements):
Prior Lien(s)(including recording information):
Exhibit D
DEED OF TRUST.doc
For value received and to secure payment of the note, Grantor conveys the property to
Trustee in trust. Grantor warrants and agrees to defend the title to the property. If
Grantor performs all the covenants and pays the note according to its terms, this deed
of trust has no further effect, and Beneficiary shall release it at Grantor's expense.
GRANTOR'S OBLIGATIONS
Grantor agrees to:
1. Keep the property in good repair and condition.
2. Pay all taxes and assessments on the property when due.
3. Preserve the lien's priority as it is established in this deed of trust.
4. Maintain, in a form acceptable to Beneficiary, an insurance policy that:
a. Covers all improvements for their full insurable value as determined
when the policy is issued and renewed, unless Beneficiary approves a
small amount in writing.
b. Contains an 80% coinsurance clause.
c. Provides fire and extended coverage, including windstorm coverage.
d. Protects Beneficiary with a standard mortgage clause.
e. Provides flood insurance at any time the property is in a flood hazard
area.
f. Contains such other coverage as Beneficiary may reasonably require.
5. Comply at all times with the requirements of the 80% coinsurance clause.
6. Deliver the insurance policy to Beneficiary and deliver renewals to Beneficiary
at least ten days before expiration.
7. Keep any buildings occupied as required by the insurance policy.
8. If this is not a first lien, pay all prior lien notes that Grantor is personally liable
to pay and abide by all prior lien instruments.
9. Principal residence requirement:
a. Grantor agrees to occupy the property described in this deed of trust as
Grantor's principal residence.
b. As used in this deed of trust, "principal residence" means a home
which, depending upon all of the facts and circumstances (including the
DEED OF TRUST.doc
good faith of the occupant) is occupied primarily for residential purposes
by Grantor.
c. The term does not include a home used as an investment property or a
recreational home or a home which is used primarily in a trade or business
(as evidenced by the use of more than fifteen percent [15%] of the total
floor space in a trade or business).
d. Grantor agrees to submit annual recertification, in a form prescribed by
Beneficiary, to the Beneficiary to evidence Grantor's occupancy under the
provisions of this Deed of Trust.
e. Grantor further agrees to notify Beneficiary immediately if at any time
the property ceases to be used as Grantor's principal residence.
10. Due on Sale Requirement. If Grantor conveys or contracts to convey the
property, or any interest the property, to a party or parties not appearing in this
instrument without the written consent of Beneficiary, then Beneficiary, at its
election exercised at any time after such event without notice to Grantor, may
declare the entire indebtedness secured hereby at once due and payable.
BENEFICIARY'S RIGHTS
1. Beneficiary may appoint in writing a substitute or successor trustee,
succeeding to all rights and responsibilities of Trustee.
2. If the proceeds of the note are used to pay any debt secured by prior liens,
Beneficiary is subrogated to all of the rights and liens of the holders of any debt
so paid.
3. Beneficiary may apply any proceeds received under the insurance policy
either to reduce the note or to repair or replace damaged or destroyed
improvements covered by the policy.
4. If Grantor fails to perform any of Grantor's obligations, Beneficiary may
perform those obligations and be reimbursed by Grantor on demand at the place
where the note is payable for any sums so paid, including attorney's fees, plus
interest on those sums from the dates of payment at the rate stated in the note
for matured, unpaid amounts. The sum to be reimbursed shall be secured by
this deed of trust.
5. If Grantor defaults on the note or fails to perform any of Grantor's obligations
or if default occurs on a prior lien note or other instrument, Beneficiary may:
a. Declare the unpaid principal balance and earned interest on the note
immediately due.
DEED OF TRUST.doc
b. Request Trustee to foreclose this lien, in which case Beneficiary or
Beneficiary's agent shall give notice of the foreclosure sale as provided by
the Texas Property Code, as then amended.
c. Purchase the property at any foreclosure sale by offering the highest
bid and then have the bid credited on the note.
6. If Grantor conveys or contracts to convey the property covered by this deed of
trust, or any interest in the property covered by this deed of trust, including a
leasehold interest, to a party or parties not appearing in this instrument without
the written consent thereto of Beneficiary, then Beneficiary, at its election
exercised any time after such event and without notice to Grantor, may declare
the entire indebtedness secured hereby at once due and payable.
Trustee's Duties:
If requested by Beneficiary to foreclose this lien, Trustee shall:
1. Either personally or by agent give notice of the foreclosure sale as required by
the Texas Property Code, as then amended.
2. Sell and convey all or part of the property to the highest bidder for cash with a
general warranty binding Grantor, subject to prior liens and to other exceptions to
conveyance and warranty.
3. From the proceeds of the sale, pay, in this order:
a. Expenses of foreclosure, including a commission to Trustee of 5% of
the bid.
b. To Beneficiary, the full amount of principle, interest, attorney's fees,
and other charges due to unpaid.
c. Any amounts required by law to be paid before payment to Grantor.
d. To Grantor, any balance.
General Provisions
1. If any of the property is sold under this deed of trust; Grantor shall
immediately surrender possession to the purchaser. If Grantor fails to do so,
Grantor shall become a tenant at sufferance of the purchaser, subject to an
action for forcible detainer.
2. Recitals in any Trustee's deed conveying the property will be presumed to be
true.
DEED OF TRUST.doc
3. Proceedings under this deed of trust, filing suit for foreclosure, or pursuing
any other remedy will not constitute an election of remedies.
4. This lien remains superior to liens later created even if the time of payment of
all or part of the note is extended or part of the property is released.
5. If any portion of the note cannot be lawfully secured by this deed of trust,
payments must be applied first to discharge that portion.
6. Grantor assigns to Beneficiary all sums payable to or received by Grantor
from condemnation of all or part of the property, from private sale in lieu of
condemnation, and from damages caused by public works or construction on or
near the property. After deducting any expenses incurred, including attorney's
fees, Beneficiary may release any remaining sums to Grantor or apply the sums
to reduce the note. Beneficiary is not be liable for failure to collect or to exercise
diligence in collecting any such sums.
7. Grantor assigns to Beneficiary absolutely, not only as collateral, all present
and future rent and other income and receipts from the property.
a. Leases are not assigned.
b. Grantor warrants the validity and enforceability of the assignment.
Grantor may as Beneficiary's licensee collect rent and other income and
receipts as long as Grantor is not in default under the note or this deed of
trust.
c. Grantor shall apply all rent and other income and receipts to payment
of the note and performance of this deed of trust, but if the rent and other
income and receipts exceed the amount due under the note and deed of
trust, Grantor may retain the excess.
d. If Grantor defaults in payment of the note or performance of this deed
of trust, Beneficiary may terminate Grantor's license to collect and then as
Grantor's agent may rent the property if it is vacant and collect all rent and
other income and receipts.
e. Beneficiary neither has nor assumes any obligations as lessor or
landlord with respect to any occupant of the property.
f. Beneficiary may exercise Beneficiary's rights and remedies under this
paragraph without taking possession of the property.
g. Beneficiary shall apply all rent and other income and receipts collected
under this paragraph first to expenses incurred in exercising Beneficiary's
rights and remedies and then to Grantor's obligations under the note and
this deed of trust in the order determined by Beneficiary.
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h. Beneficiary is not required to act under this paragraph, and acting
under this paragraph does not waive any of Beneficiary's other rights or
remedies.
i. If Grantor becomes a voluntary or involuntary bankrupt, Beneficiary's
filing a proof of claim in bankruptcy will be tantamount to the appointment
of a receiver under Texas law.
8. Interest on the debt secured by this deed of trust do not exceed the maximum
amount of nonusurious interest that may be contracted for, taken, reserved,
charged, or received under law.
a. Any interest in excess of that maximum amount shall be credited on
the principal of the debt or, if that has been paid, refunded.
b. On any acceleration or required or permitted prepayment, any such
excess shall be canceled automatically as of the acceleration or
prepayment or, if already paid, credited on the principal of the debt or, if
the principal of the debt has been paid, refunded.
c. This provision overrides other provisions in this and all other
instruments concerning the debt.
9. In the event the property described in this deed of trust is subject to prior liens
in favor of third parties, any default under any prior lien instrument is a default
under this deed of trust.
10. When the context requires, singular nouns and pronouns include the plural.
11. The term "note" includes all sums secured by this deed of trust.
12. This deed of trust binds, inures to the benefit of, and may be exercised by
successors in interest of all parties.
13. The note secured by this deed of trust evidences funds advanced for a
portion of the purchase price of the property described in this deed of trust, and is
additionally secured by a vendor's lien on the property.
14. Upon the sale, rent, or change of ownership of the property described in this
deed of trust for any reasons, by any means, or upon the death of the Makers of
the Real Estate Note(s) secured by this deed of trust, the entire principal and
appropriate interest of the Real Estate Note(s) immediately become due and
payable without notice or presentment of any kind including, without limitations,
notice of intent to accelerate and notice of acceleration.
a. The Executive Director of the Corpus Christi Business and Job
Development Corporation may waive this requirement upon the written
DEED OF TRUST.doc
request of the Makers of the Real Estate Note(s) or their heirs,
successors, and assigns.
b. Should the property no longer become the primary residence or should
there be a change of use, the entire principal and appropriate interest shall
immediately become due and payable without notice or presentment of
any kind including, without limitations, notice of intent to accelerate and
notice of acceleration.
Witness our hands this
day of , 200 A.D.
Name:
Name:
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on the day of
200_, by
Notary Public, State of Texas
STATE OF TEXAS
COUNTY OF NUECES
This instrument was acknowledged before me on the
200, by
Notary Public, State of Texas
DEED OF TRUST.doc
day of
AFTER RECORDING RETURN TO:
Corpus Christi Business and Job Development Corporation
c/o City of Corpus Christi Economic Development Office
P. O. Box 9277
Corpus Christi, Texas 78469
DEED OF TRUST.doc
AFFORDABLE HOUSING PROJECT SERVICE AGREEMENT
This Affordable Housing Project Service Agreement (" Service Agreement") is entered
into between the Corpus Christi Business and Job Development Corporation
("Corporation") and the City of Corpus Christi, Texas ("City").
WHEREAS, the Texas Legislature in Section 4A of Article 5190.6, Vernon's Texas
Revised Civil Statutes (Development Corporation Act of 1979) empowered local
communities with the ability to adopt an optional local sales and use tax as a means of
improving the economic health and prosperity of their citizens;
WHEREAS, on November 5, 2002, residents of the City of Corpus Christi ("City")
passed Proposition 2, New and Expanded Business Enterprises, which authorized the
adoption of a sales and use tax for the promotion and development of new and
expanded business enterprises at the rate of one-eighth of one percent to be imposed
for 15 years;
WHEREAS, in the same election, the residents of the City passed Proposition 2B,
Affordable Housing, which authorized the use of a portion of the sales and use tax
approved under Proposition 2 for affordable housing, up to $500,000 annually, so long
as there are projects for which the amount can reasonably be used;
WHEREAS, the 1/8 cent sales tax authorized by passage of Proposition 2 and allocated
under Proposition 2B for affordable housing was subsequently enacted by the City's
City Council ("City Council"), and filed with the State Comptroller of Texas, effective
April 1, 2003, to be administered by the Corporation's Board of Directors ("Board");
WHEREAS, the Corporation is authorized to promote the development and expansion
of affordable housing, as defined by 42 U.S.C. Section12745, for the citizens of Corpus
Christi, Texas;
WHEREAS, on April 7, 2008, the Board issued a request for proposals for affordable
housing projects;
WHEREAS, Section 21 of the Texas Development Corporation Act of 1979, Art. 5190.6,
Vernon's Texas Revised Civil Statutes, requires the City Council to approve all
programs and expenditures of the Corporation;
WHEREAS, City of Corpus Christi ("Grantee") submitted a proposal to the Board to
request funds for a "Home Buyer Assistance Program";
WHEREAS, the Board has determined that it is in the best interests of the residents of
the City of Corpus Christi that affordable housing funds be awarded, and by execution
of the Affordable Housing Project Agreement between the Board and Grantee, to
accomplish the affordable housing project described in that agreement and the
Grantee's proposal;
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Cvhihi+ P
WHEREAS, the City Council concurs with the Board's determination that it is in the best
interests of the residents of the City of Corpus Christi that affordable housing funds be
awarded. The City Council authorizes the Affordable Housing Project Agreement
between the Board and Grantee;
In consideration of the covenants, promises, and conditions stated in this Service
Agreement, the Corporation and the City agree as follows:
1. Service Agreement to Implement Affordable Housing Project Agreement. This
Service Agreement between the City and the Corporation is executed to implement the
Affordable Housing Project Agreement between the Corporation and Grantee.
2. Term. The term of this Service Agreement runs concurrently with the term of the
Affordable Housing Project Agreement.
3. Services to be Provided by City.
a. The City Manager, or the City Manager's designee, shall administer funding
on behalf of the Corporation.
b. The City Manager, or the City Manager's designee, shall perform contract
administration responsibilities outlined in the Affordable Housing Project
Agreement for the Corporation.
4. Appropriation of Funds. Any future payments by the City are subject to
appropriation of funds by City's Council.
5. Effective Date. The effective date of this Service Agreement is the latest date that
either party executes this Service Agreement.
6. Amendments or Modifications. No amendments or modifications to this Service
Agreement may be made, nor any provision waived, unless in writing signed by a
person duly authorized to sign agreements on behalf of each party.
7. Severability.
a. If for any reason, any section, paragraph, subdivision, clause, provision,
phrase or word of this Service Agreement or the application of this Service
Agreement to any person or circumstance is, to any extent, held illegal, invalid, or
unenforceable under present or future law or by a final judgment of a court of
competent jurisdiction, then the remainder of this Service Agreement, or the
application of the term or provision to persons or circumstances other than those
as to which it is held illegal, invalid, or unenforceable, will not be affected by the
law or judgment, for it is the definite intent of the parties to this Service
Agreement that every section, paragraph, subdivision, clause, provision, phrase,
or word of this Service Agreement be given full force and effect for its purpose.
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b. To the extent that any clause or provision is held illegal, invalid, or
unenforceable under present or future law effective during the term of this
Service Agreement, then the remainder of this Service Agreement is not affected
by the law, and in lieu of any illegal, invalid, or unenforceable clause or provision,
a clause or provision, as similar in terms to the illegal, invalid, or unenforceable
clause or provision as may be possible and be legal, valid, and enforceable, will
be added to this Service Agreement automatically.
8. Captions. The captions in this Service Agreement are for convenience only and are
not a part of this Service Agreement. The captions do not in any way limit or amplify the
terms and provisions of this Service Agreement.
The City of Corpus Christi Corpus Christi Business &
Job Development Corporation
George K. Noe Eloy Salazar
City Manager Chairperson
Date: Date:
Attest:
Armando Chapa
City Secretary
Approved as to Legal Form this day of July, 2008.
R. Jay Reining
First Assistant City Attorney
for City Attorney
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